KB Home

DB:KBH Stock Report

Market Cap: €4.6b

KB Home Valuation

Is KBH undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

6/6

Valuation Score 6/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of KBH when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: KBH (€62.5) is trading below our estimate of fair value (€103.37)

Significantly Below Fair Value: KBH is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for KBH?

Key metric: As KBH is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for KBH. This is calculated by dividing KBH's market cap by their current earnings.
What is KBH's PE Ratio?
PE Ratio7.9x
EarningsUS$610.04m
Market CapUS$4.83b

Price to Earnings Ratio vs Peers

How does KBH's PE Ratio compare to its peers?

The above table shows the PE ratio for KBH vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average16.1x
PUM PUMA
26.3x18.5%€6.8b
BOSS Hugo Boss
14x13.3%€3.0b
EIN3 Einhell Germany
12.2x9.2%€712.2m
MDC M.D.C. Holdings
11.9x8.0%US$4.7b
KBH KB Home
7.9x6.6%€4.8b

Price-To-Earnings vs Peers: KBH is good value based on its Price-To-Earnings Ratio (7.9x) compared to the peer average (16.1x).

Price to Earnings Ratio vs Industry

How does KBH's PE Ratio compare vs other companies in the European Consumer Durables Industry?

4 CompaniesPrice / EarningsEstimated GrowthMarket Cap
KBH 7.9xIndustry Avg. 13.2xNo. of Companies10PE0816243240+
4 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: KBH is good value based on its Price-To-Earnings Ratio (7.9x) compared to the European Consumer Durables industry average (13.2x).

Price to Earnings Ratio vs Fair Ratio

What is KBH's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

KBH PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio7.9x
Fair PE Ratio16.3x

Price-To-Earnings vs Fair Ratio: KBH is good value based on its Price-To-Earnings Ratio (7.9x) compared to the estimated Fair Price-To-Earnings Ratio (16.3x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst KBH forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€62.50
€78.32
+25.3%
12.0%€99.92€61.85n/a13
Dec ’25€78.00
€78.71
+0.9%
13.3%€96.97€60.03n/a13
Nov ’25€72.00
€78.71
+9.3%
13.3%€96.97€60.03n/a13
Oct ’25€76.50
€76.34
-0.2%
13.4%€94.30€58.38n/a13
Sep ’25€75.00
€68.41
-8.8%
9.7%€80.94€59.11n/a13
Aug ’25€79.50
€69.44
-12.7%
9.8%€81.68€59.65n/a12
Jul ’25€65.00
€70.37
+8.3%
9.3%€83.05€60.65n/a12
Jun ’25€64.50
€67.20
+4.2%
9.7%€80.14€55.27n/a12
May ’25€61.50
€67.20
+9.3%
9.7%€80.14€55.27n/a12
Apr ’25€64.18
€65.92
+2.7%
12.8%€81.00€46.55n/a13
Mar ’25€62.38
€60.55
-2.9%
12.7%€75.36€45.95n/a13
Feb ’25€55.14
€60.55
+9.8%
12.7%€75.36€45.95n/a13
Jan ’25€56.82
€52.98
-6.8%
13.1%€63.62€39.08n/a14
Dec ’24€47.63
€52.03
+9.2%
9.8%€59.76€40.15€78.0014
Nov ’24€41.65
€52.28
+25.5%
10.7%€60.76€40.82€72.0013
Oct ’24€44.08
€53.77
+22.0%
11.5%€63.87€40.39€76.5012
Sep ’24€46.76
€51.31
+9.7%
10.8%€57.89€38.30€75.0013
Aug ’24€48.96
€51.31
+4.8%
10.8%€57.89€38.30€79.5013
Jul ’24€47.17
€52.64
+11.6%
11.1%€59.68€39.48€65.0012
Jun ’24€40.50
€41.71
+3.0%
15.8%€52.40€27.14€64.5013
May ’24€38.43
€40.37
+5.1%
15.2%€50.70€26.74€61.5012
Apr ’24€36.28
€40.37
+11.3%
15.2%€50.70€26.74€64.1812
Mar ’24€33.24
€37.82
+13.8%
16.8%€50.95€26.86€62.3812
Feb ’24€35.19
€37.34
+6.1%
17.4%€50.76€26.76€55.1411
Jan ’24€29.88
€35.11
+17.5%
16.4%€42.39€22.61€56.8211
Dec ’23€29.94
€35.73
+19.3%
16.6%€43.67€23.29€47.6311

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/22 14:29
End of Day Share Price 2024/12/20 00:00
Earnings2024/08/31
Annual Earnings2023/11/30

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

KB Home is covered by 41 analysts. 11 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Christopher GrajaArgus Research Company
Matthew BouleyBarclays
Stephen KimBarclays